Thibodaux budget up 22 percent despite cost-cutting measures

Published: Tuesday, November 5, 2013 at 9:58 p.m.

Last Modified: Tuesday, November 5, 2013 at 9:58 p.m.

Thibodaux Mayor Tommy Eschete has introduced what he called a “very streamlined” city operating budget for the coming year.

Eschete told the council Tuesday he has taken an aggressive approach to cutting costs but added that some action to address rising costs is inevitable.

The council will seek public comment on the budget immediately following its Dec. 3 meeting, which begins at 5 p.m. in the Council Chambers at City Hall.

“I promise you, you will not find one ounce of fluff within this budget,” Eschete said.

The city projects to spend just under $35 million next year including operating expenses, gas purchases, garbage collection, construction projects and debt service. The budget is up about 22 percent .

There is increased spending for wastewater system improvements, including sewer lines.

Eschete said improvements to the city's water lines and the city's contribution to the widening of Canal Boulevard have been included in the spending plan.

The new wastewater treatment facility planned for the north side of the city — which is being paid for with an $8 million loan obtained via sewer fee increases approved last year — is meant to provide capacity for further growth in the area while also taking strain off the facility that handles wastewater from the entire city.

The general fund operating budget, money spent on salaries, recreation programs and such, comes in about $200,000 higher than last year's total.

The increase in operating expenses is mostly because of mandated increases in retirement contributions and health care programs, Eschete said.

The city's revenues are projected to decrease by 6 percent next year, bringing in about $23.3 million. Sales tax revenue is projected to remain steady at $9.2 million while grant money is projected to decrease.

Because of these rising costs and dipping expenditures, Eschete said the city will again dip into its reserves to bridge a $100,000 gap.

Eschete said revenues have been steady after the spike created by recovery from hurricanes Katrina and Gustav but have been outpaced by the rising cost of operating the government.

“Those reserves are just not what they should be,” Eschete said.

The mayor described the city as reaching a time where a decision will have to be made. Either cut services or increase revenue. The city's main sources of revenue are a sales tax levied on items purchased within the city limits and a 14-mill property tax. Eschete stopped short of endorsing any increase in taxes, instead leaving the decision to the council.

“It's up to the council, but after this year's budget process, we should look at the big picture,” Eschete said. “We don't want to get pushed into a corner where we have to start chopping things arbitrarily.”

Police retirement is one of the largest and continually growing city expenses.

This year, the city's retirement match is at 33 percent. The city is legally required to provide retirement through the system.

Eschete noted that keeping up with evolving technology needs is also a continually rising expense. He said an increase in the number of employees is not to blame, adding the city has “plus or minus 10” of the total employees it had in 1985.

<p>Thibodaux Mayor Tommy Eschete has introduced what he called a “very streamlined” city operating budget for the coming year. </p><p>Eschete told the council Tuesday he has taken an aggressive approach to cutting costs but added that some action to address rising costs is inevitable. </p><p>The council will seek public comment on the budget immediately following its Dec. 3 meeting, which begins at 5 p.m. in the Council Chambers at City Hall. </p><p>“I promise you, you will not find one ounce of fluff within this budget,” Eschete said. </p><p>The city projects to spend just under $35 million next year including operating expenses, gas purchases, garbage collection, construction projects and debt service. The budget is up about 22 percent .</p><p>There is increased spending for wastewater system improvements, including sewer lines. </p><p>Eschete said improvements to the city's water lines and the city's contribution to the widening of Canal Boulevard have been included in the spending plan. </p><p>The new wastewater treatment facility planned for the north side of the city — which is being paid for with an $8 million loan obtained via sewer fee increases approved last year — is meant to provide capacity for further growth in the area while also taking strain off the facility that handles wastewater from the entire city.</p><p>The general fund operating budget, money spent on salaries, recreation programs and such, comes in about $200,000 higher than last year's total. </p><p>The increase in operating expenses is mostly because of mandated increases in retirement contributions and health care programs, Eschete said. </p><p>The city's revenues are projected to decrease by 6 percent next year, bringing in about $23.3 million. Sales tax revenue is projected to remain steady at $9.2 million while grant money is projected to decrease. </p><p>Because of these rising costs and dipping expenditures, Eschete said the city will again dip into its reserves to bridge a $100,000 gap. </p><p>Eschete said revenues have been steady after the spike created by recovery from hurricanes Katrina and Gustav but have been outpaced by the rising cost of operating the government. </p><p>“Those reserves are just not what they should be,” Eschete said. </p><p>The mayor described the city as reaching a time where a decision will have to be made. Either cut services or increase revenue. The city's main sources of revenue are a sales tax levied on items purchased within the city limits and a 14-mill property tax. Eschete stopped short of endorsing any increase in taxes, instead leaving the decision to the council. </p><p>“It's up to the council, but after this year's budget process, we should look at the big picture,” Eschete said. “We don't want to get pushed into a corner where we have to start chopping things arbitrarily.” </p><p>Police retirement is one of the largest and continually growing city expenses. </p><p>This year, the city's retirement match is at 33 percent. The city is legally required to provide retirement through the system. </p><p>Eschete noted that keeping up with evolving technology needs is also a continually rising expense. He said an increase in the number of employees is not to blame, adding the city has “plus or minus 10” of the total employees it had in 1985.</p>